National Minimum Wage and National Living Wage rate updates
The National Minimum Wage and National Living Wage rates will rise on 1 April 2021.
The National Living Wage applies to people over 23 years of age and the National Minimum Wage for school leaving age.
For business owners the new minimum rates you will need to be aware of for employees are as follows:
- Age 23 and over – £8.91
- Age 21 to 22 – £8.36
- Age 18 to 20 – £6.56
- Under 18 – £4.62
- Apprentice rate for those under 19 or over 19 but in their first year of apprenticeship: £4.30
The National Living Wage age is reviewed each April. Currently the National Living Wage (from April 2020-March 2021) is for those aged 25 and over. As of April 2021, this will be lowered to 23 years and over. You can view previous rates and examples via HMRC.
The government also has further guidelines on the minimum wage for different work including those paid hourly, annual salary or unmeasured work.
These new rates were announced by the Chancellor of the Exchequer Rishi Sunak in his Spring budget 2021. The new National Living Wage rate equates to an annual increase of £345 to a full-time worker.
Accountancy services Oxted
To avoid any errors when the changes come into effect get in touch to speak with our team of accountants about payroll services.
We offer services to help your business manage everything financial, including bookkeeping, payroll, corporation tax, audits, and more. Contact our accountants in Oxted to get started!